(Reuters) - Technology stocks edged higher on Tuesday and signaled a pause to two days of selloff, while a rally in bank and other stocks powered by tax-cut optimism stalled, capping gains on the S&P 500 and the Dow.

Micron Technology, Amazon and Microsoft were among the biggest tech gainers, while Bank of America and retail stocks Macy's and Nordstrom were all lower.

The Senate approved its version of tax code overhaul in a 51-49 vote over the weekend. Talks will begin likely next week between the Senate and the House, which had approved its own version of the legislation.

Once the bills are reconciled, the resulting bill could cut corporate tax rates to 20 percent from 35 percent.

UBS strategists project that overall S&P 500 earnings would rise by 6.5 percent should the corporate tax rate fall to 25 percent and increase by 9.5 percent should the rate go to 20 percent.

At 9:41 a.m. ET (1441 GMT), the Dow Jones Industrial Average was up 1.32 points, or 0.01 percent, at 24,291.37, the S&P 500 was up 0.61 points, or 0.02 percent, at 2,640.05 and the Nasdaq Composite was up 29.50 points, or 0.44 percent, at 6,804.87.